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US President Donald Trump on Wednesday demanded that Jerome Powell resign immediately from the Federal Reserve’s Board of Governors over cost overruns linked to the renovation of the central bank’s headquarters.
Trump said he had asked Attorney General Todd Blanche to review an inspector general’s report on the project. In a post on Truth Social, he cited deficiencies in the management of the Washington, DC, renovation and accused Powell of failing to control costs.
“This is Jerome Powell’s fault, and he should be forced to resign, IMMEDIATELY!” Trump wrote.
The president said he had instructed Blanche to examine the report and determine what action should be taken over a project that, according to his post, could cost at least $2.5 billion. Trump also threatened legal action if Powell refused to step down, saying the government should sue him for “either corruption or incompetence.”
Inspector general found oversight shortcomings
The inspector general’s review found no grounds for a criminal referral and no administrative misconduct. It did, however, identify significant shortcomings in the Federal Reserve’s oversight of the renovation.
Powell remains a Federal Reserve governor after his term as chair ended in May.
Trump highlighted findings that the Fed board did not receive a project cost estimate from its construction manager until January 2026, three and a half years after construction began and after more than $2 billion in construction costs had been awarded.
The passages quoted in Trump’s post also said the board had not established a guaranteed maximum price by July 2026. That left the central bank without cost certainty and without transferring substantial financial risk to the construction manager.
Trump predicted that the final bill could reach $3.5 billion or $4 billion. He claimed he could have completed the renovation for $25 million while preserving the buildings’ historic appearance.
Renovation dispute tied to interest-rate tensions
The renovation has become a focal point of Trump’s wider dispute with Powell over interest rates and the Federal Reserve’s independence.
In January, Powell disclosed that the Justice Department had served the Fed with grand jury subpoenas threatening a criminal indictment related to his June 2025 Senate testimony about the renovation.
Powell said the threat was connected to the Federal Reserve setting interest rates according to its assessment of economic conditions rather than the president’s preferences. He described the renovation and his congressional testimony as pretexts for the pressure.
In April, Powell said the Justice Department had assured the Fed that it would not reopen the investigation without a criminal referral from the Federal Reserve’s inspector general.
Project covers two historic buildings
The project involves the Marriner S. Eccles Building, the Federal Reserve Board’s headquarters, and the neighboring 1951 Constitution Avenue Building.
The Fed has put the board-approved renovation budget at $2.46 billion. The work is intended to modernize building systems, remove asbestos and lead contamination, improve safety and accommodate modern workplace technology.
According to the watchdog’s findings, construction costs alone rose from an estimated $921 million in February 2020 to $2.018 billion by December 2024.
The Federal Reserve has attributed the overruns to inflation, unexpected remediation expenses and additional requirements imposed by agencies reviewing the project.
